Makati tax rates reduction eyed
‘Our robust revenues provide us with the financial stability we need to continuously implement programs that go well beyond the basic needs of our constituents’
Daily Tribune‘Our robust revenues provide us with the financial stability we need to continuously implement programs that go well beyond the basic needs of our constituents’
The local government of Makati on Thursday disclosed that it is eyeing to reduce its current tax rates as it boasted a robust revenue and strong cash position.
Makati Mayor Abby Binay said that they can afford to reduce current tax rates, especially real property tax due to the local government’s efficient revenue collection.
“It would make the city more attractive to local and foreign investors, thus increasing Makati’s competitiveness as a premier investment destination in Asia,” Binay said.
The mayor’s announcement comes at the heels of an 80-percent collection on the targeted P18.4-billion revenue target for 2024 which amounted to P14,764,700,267.36 last April 2024.
Binay stressed that with the collection, it will ensure adequate funding to sustain the implementation of enhanced health, education and other social programs and innovations planned for the year.
“Our robust revenues provide us with the financial stability we need to continuously implement programs that go well beyond the basic needs of our constituents,” Binay said.
“We are grateful to our taxpayers for their trust and confidence in the city government, especially the business sector which remains the largest contributor to the city coffers,” she added.
Binay also revealed that Makati’s local revenue sources make up the bulk of the city’s income, and the city remains among few local government units in the country that are not dependent on the National Tax Allotment (NTA).
Based on the report of City Treasurer Jesusa Cuneta, the city collected nearly P8.2 billion in Business Tax or 81 percent of target, followed by Real Property Tax with P5.2 billion or 107 percent of target.
Records of the Business Permit and Licensing Office showed that a total of 1,820 new businesses have registered in the first four months of the year, with combined capital investment worth over P16.3 billion. In the same period, a total of 34,203 businesses renewed their business permits and registered total gross sales amounting to over P1.8 trillion.
“Our total budget this year is P21.1 billion, and the Social Development sector has the lion’s share with an allocation of P10.4 billion, or 49.43 percent. Aside from our income from taxes, we also have substantial cash in bank amounting to P33.6 billion,” Binay said.
Under the sector, the Education sub-sector got the biggest share with P4.5 billion, followed by Health with P4.1 billion, and Social Welfare with P1.8 billion.
Under the incumbent Binay administration, Makati public school students every school year receive new uniforms, leather and rubber shoes, socks, bags, school supplies, tumblers, emergency go bags, grocery packs, rain gear, hygiene and anti-dengue kits, and nutritious snacks, all for free.
This year, the city is converting a total of 400 classrooms into smart classrooms equipped with interactive whiteboards, notebook tablets for students, and unlimited internet access for both students and teachers.
Meantime, Yellow Card holders and their dependents are entitled to free health care services ranging from primary to tertiary care. Aside from primary health care provided in barangay health centers, they can have free checkups and diagnostic services, emergency treatment, and hospitalization at Ospital ng Makati.
